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The S&P 500 has now performed back to back “90% up days”.

A 90% up day is a day in which 90% or more of the stocks that comprise a stock market index rise. Historically, this is a very bullish development. And back to back 90% up days are even better! In fact, back to back 90% up days like the ones the S&P 500 staged on Friday and Monday are usually a hallmark of a market bottom!

As Ryan Detrick has noted, since 1980, two consecutive days with 90% advancing issues in the S&P 500 have resulted in positive returns 12 months out ~91% of the time. Even better, the median return over that time period is 16.5%.

See for yourself:

(Click on image to enlarge)

Put simply, a major metric is signaling to us that the odds greatly favor stocks have bottomed .The odds favor a rally, NOT a crash.

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